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1772
Federal Register / Vol. 82, No. 4 / Friday, January 6, 2017 / Notices
2016, applicant made a final liquidating
distribution to its shareholders, based
on net asset value. Expenses of $33,332
incurred in connection with the
liquidation were paid by applicant.
Filing Dates: The application was
filed on December 23, 2014, and
amended on December 7, 2016 and
December 22, 2016.
Applicant’s Address: 400 Park
Avenue, New York, New York 10022.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–32041 Filed 1–5–17; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79713; File No. SR–
NYSEARCA–2016–166]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.35(d)(4)
December 30, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
16, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
sradovich on DSK3GMQ082PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 7.35(d)(4) to
provide that the Exchange would not
report an Official Closing Price, as
defined under NYSE Arca Equities Rule
1.1(gg)(1), if there were no consolidated
last-sale eligible trades on a trading day.
The proposed rule change is available
on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
VerDate Sep<11>2014
18:06 Jan 05, 2017
Jkt 241001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1. Purpose
The Exchange proposes to amend
NYSE Arca Equities Rule 7.35(d)(4) to
provide that the Exchange would not
report an Official Closing Price, as
defined under NYSE Arca Equities Rule
1.1(gg)(1), if there were no consolidated
last-sale eligible trades on a trading day.
This proposed rule change would not
change how the Official Closing Price
would be determined and disseminated
if the Exchange is unable to conduct a
closing transaction in one or more
securities due to a systems or technical
issue, as described in NYSE Arca
Equities Rules 1.1(gg)(2)–(4).
The Exchange reports an Official
Closing Price to the securities
information processor (‘‘SIP’’) as an ‘‘M’’
sale condition.4 As set forth in the SIP
Specifications, a price reported to the
SIP by an exchange under the ‘‘M’’ sale
condition, which is called the ‘‘Market
Center Official Close,’’ is not used for
purposes of determining a consolidated
last sale price or the high or low price
of a security and does not include any
volume information. Each exchange
determines what price could be reported
to the SIP as its ‘‘Market Center Official
Close.’’ As provided for in Rule
4 For a description of all sale conditions that are
reportable to the SIP, including the ‘‘M’’ and ‘‘6’’
sale conditions, see the Consolidated Tape System
Participant Communications Interface
Specification, dated September 15, 2016, at 87,
available here: https://www.ctaplan.com/
publicdocs/ctaplan/notifications/trader-update/cts_
input_spec.pdf, and the UTP Plan Trade Data Feed
Direct Subscriber Interface Specification, dated
November 2015, at 7–3, available here: http://
www.utpplan.com/DOC/utdfspecification.pdf
(together, ‘‘SIP Specifications’’). A trade reported to
the SIP as a Market Center Closing Trade with a ‘‘6’’
sale condition includes volume information, is
included in the consolidated last sale, and is
included in the high or low price of a security. The
Exchange reports to the SIP closing auction trades
of a round lot or more with a ‘‘6’’ sale condition.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
7.35(d)(4), the Exchange publishes an
Official Closing Price for all securities
that trade on the NYSE Arca
Marketplace. The term ‘‘Official Closing
Price’’ is defined in Rule 1.1(gg).
The Exchange is proposing to amend
NYSE Arca Equities Rule 7.35(d)(4) to
provide that an Official Closing Price, as
defined in NYSE Arca Equities Rule
1.1(gg)(1), would not be reported for a
security if there were no consolidated
last-sale eligible trades in such security
on a trading day.5 The Exchange does
not believe that it should publish an
Official Closing Price to the SIP as an
‘‘M’’ value if there has not been a
consolidated last-sale eligible trade in a
security on a trading day. For example,
based on feedback from industry
participants, the Exchange understands
that certain market participants, such as
index providers and mutual funds,
follow a different method of
determining a security’s closing price
when there have not been any last-sale
eligible trades on a trading day. Under
these circumstances, the Exchange
understands that an Official Closing
Price reported to the SIP as an ‘‘M’’ sale
condition that differs from how an
industry market participant may
determine such value for its own
purposes could lead to confusion if a
market participant’s systems read the
‘‘M’’ value published by the SIP that
differs from their calculation.
Accordingly, this proposed rule
change is intended to amend NYSE Arca
Equities Rule 7.35(d)(4) to provide that
the Exchange would not report an
Official Closing Price, as defined in Rule
1.1(gg)(1), in a security as an ‘‘M’’ sale
condition to the SIP if there were no
consolidated last-sale eligible trades in
such security on a trading day. And, as
noted above, this proposed rule change
would not alter how the Official Closing
Price would be disseminated under
NYSE Arca Equities Rules 1.1(gg)(2)–(4).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,7 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
5 The Exchange also proposes to amend NYSE
Arca Equities Rule 7.35(d)(4) to provide that the
Exchange would ‘‘report’’ an Official Closing Price,
rather than ‘‘publish’’ an ‘‘Official Closing Price,’’
because the SIP, and not the Exchange, publishes
the Official Closing Price.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\06JAN1.SGM
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Federal Register / Vol. 82, No. 4 / Friday, January 6, 2017 / Notices
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
The Exchange believes that the
proposed rule change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because it
would provide transparency of when
the Exchange’s would not report a price
to the SIP as an ‘‘M’’ sale condition. The
Exchange believes that the proposed
rule change is consistent with the Act
because the ‘‘M’’ sale condition does not
contribute to the consolidated last sale
price for a security, the high or low
price of a security, or reported volume
for a security, and therefore is an
informational value. The Exchange
further believes that this proposed rule
change is consistent with the protection
of investors and the public interest
because it would reduce confusion by
eliminating publication to the SIP of a
price that may conflict with how an
index provider or mutual fund
determines that value for a security if
there are no consolidated last-sale
eligible trades on a trading day. Finally,
the Exchange believes that the proposed
rule change would remove impediments
to and perfect the mechanism of a free
and open market and a national market
system because it would apply only
when the Exchange is fully operational.
If the Exchange is unable to conduct a
closing transaction due to a systems or
technical issue, current NYSE Arca
Equities Rule 1.1(gg)(2)–(4) would
govern, with no change.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
sradovich on DSK3GMQ082PROD with NOTICES
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues, but
rather to specify that the Exchange
would not be required to report an
Official Closing Price to the SIP as an
‘‘M’’ sale condition if there has not been
a consolidated last-sale eligible trade on
a trading day.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
VerDate Sep<11>2014
18:06 Jan 05, 2017
Jkt 241001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),11 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
believes that waiving the operative
delay would be consistent with the
protection of investors and the public
interest because it would make
transparent that the Exchange would not
report an ‘‘M’’ sale condition to the SIP
for a security if there has not been a lastsale eligible trade on a trading day. The
Exchange further believes that the
proposed rule change is consistent with
the protection of investors and the
public interest because it would not
change how an Official Closing Price
would be disseminated under NYSE
Arca Equities Rules 1.1(gg)(2)–(4). The
Commission believes that the proposed
rule change is consistent with the
protection of investors and the public
interest because it clarifies the
Exchange’s reporting practices while
maintaining its procedures for reporting
and disseminating an Official Closing
Price. Accordingly, the Commission
hereby waives the 30-day operative
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
9 17
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
1773
delay and designates the proposal
operative upon filing.12
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEARCA–2016–166 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEARCA–2016–166.
This file number should be included on
the subject line if email is used. To help
the Commission process and review
your comments more efficiently, please
use only one method. The Commission
will post all comments on the
Commission’s Internet Web site (http://
www.sec.gov/rules/sro.shtml). Copies of
the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
12 For purposes only of waiving the operative
delay of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
13 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\06JAN1.SGM
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Federal Register / Vol. 82, No. 4 / Friday, January 6, 2017 / Notices
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEARCA–2016–166, and should be
submitted on or before January 27, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–32036 Filed 1–5–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79716; File No. SR–
NYSEArca–2016–168]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Options Fee Schedule and the NYSE
Arca Equities Schedule of Fees and
Charges for Exchange Services To
Modify the Fees Related to Four
Bundles of Co-Location Services in
Connection With the Exchange’s CoLocation Services
December 30, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
19, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
14 17
CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
sradovich on DSK3GMQ082PROD with NOTICES
18:06 Jan 05, 2017
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Options Fee Schedule (the
‘‘Options Fee Schedule’’) and the NYSE
Arca Equities Schedule of Fees and
Charges for Exchange Services (the
‘‘Equities Fee Schedule’’ and, together
with the Options Fee Schedule, the ‘‘Fee
Schedules’’) to modify the fees related
to four bundles of co-location services
(‘‘Partial Cabinet Solution bundles’’) in
connection with the Exchange’s colocation services. The Exchange
proposes to implement the fee changes
effective January 1, 2017. The proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Exchange’s Fee Schedules to modify the
1
VerDate Sep<11>2014
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Jkt 241001
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
fees related to Partial Cabinet Solution
bundles in connection with the
Exchange’s co-location services.4
Currently, the Exchange offers Users 5
that purchase a Partial Cabinet Solution
bundle on or before December 31, 2016
a 50% reduction in the monthly
recurring charges (‘‘MRC’’) for the first
12 months.6 The Exchange now
proposes to extend that 50% reduction
until December 31, 2017. The Exchange
proposes to implement the fee changes
effective January 1, 2017.
The Exchange offers the four Partial
Cabinet Solution bundles in order to
attract smaller Users, including those
with minimal power or cabinet space
demands or those for which the costs
attendant with having a dedicated
cabinet or greater network connection
bandwidth are too burdensome.7 Under
the proposed change, such smaller
Users will be able to avail themselves of
the reduction until December 31, 2017.
Specifically, the Exchange proposes to
modify its Fee Schedules so that they
read as follows:
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 63275 (November 8, 2010), 75 FR
70048 (November 16, 2010) (SR–NYSEArca–2010–
100) (the ‘‘Original Co-location Filing’’). The
Exchange operates a data center in Mahwah, New
Jersey (the ‘‘data center’’) from which it provides
co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
As specified in the Fee Schedules, a User that
incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to colocation fees for the same co-location service
charged by the Exchange’s affiliates New York
Stock Exchange LLC (‘‘NYSE LLC’’) and NYSE MKT
LLC (‘‘NYSE MKT and, together with NYSE LLC,
the ‘‘Affiliate SROs’’). See Securities Exchange Act
Release No. 70173 (August 13, 2013), 78 FR 50459
(August 19, 2013) (SR–NYSEArca–2013–80).
6 See Securities Exchange Act Release No. 77070
(Feb. 5, 2016), 81 FR 7401 (Feb. 11, 2016) (SR–
NYSEArca–2015–102).
7 See id at 7402.
E:\FR\FM\06JAN1.SGM
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Agencies

[Federal Register Volume 82, Number 4 (Friday, January 6, 2017)]
[Notices]
[Pages 1772-1774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-32036]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79713; File No. SR-NYSEARCA-2016-166]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.35(d)(4)
December 30, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on December 16, 2016, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 7.35(d)(4)
to provide that the Exchange would not report an Official Closing
Price, as defined under NYSE Arca Equities Rule 1.1(gg)(1), if there
were no consolidated last-sale eligible trades on a trading day. The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Equities Rule 7.35(d)(4)
to provide that the Exchange would not report an Official Closing
Price, as defined under NYSE Arca Equities Rule 1.1(gg)(1), if there
were no consolidated last-sale eligible trades on a trading day. This
proposed rule change would not change how the Official Closing Price
would be determined and disseminated if the Exchange is unable to
conduct a closing transaction in one or more securities due to a
systems or technical issue, as described in NYSE Arca Equities Rules
1.1(gg)(2)-(4).
The Exchange reports an Official Closing Price to the securities
information processor (``SIP'') as an ``M'' sale condition.\4\ As set
forth in the SIP Specifications, a price reported to the SIP by an
exchange under the ``M'' sale condition, which is called the ``Market
Center Official Close,'' is not used for purposes of determining a
consolidated last sale price or the high or low price of a security and
does not include any volume information. Each exchange determines what
price could be reported to the SIP as its ``Market Center Official
Close.'' As provided for in Rule 7.35(d)(4), the Exchange publishes an
Official Closing Price for all securities that trade on the NYSE Arca
Marketplace. The term ``Official Closing Price'' is defined in Rule
1.1(gg).
---------------------------------------------------------------------------
\4\ For a description of all sale conditions that are reportable
to the SIP, including the ``M'' and ``6'' sale conditions, see the
Consolidated Tape System Participant Communications Interface
Specification, dated September 15, 2016, at 87, available here:
https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/cts_input_spec.pdf, and the UTP Plan Trade Data Feed Direct
Subscriber Interface Specification, dated November 2015, at 7-3,
available here: http://www.utpplan.com/DOC/utdfspecification.pdf
(together, ``SIP Specifications''). A trade reported to the SIP as a
Market Center Closing Trade with a ``6'' sale condition includes
volume information, is included in the consolidated last sale, and
is included in the high or low price of a security. The Exchange
reports to the SIP closing auction trades of a round lot or more
with a ``6'' sale condition.
---------------------------------------------------------------------------
The Exchange is proposing to amend NYSE Arca Equities Rule
7.35(d)(4) to provide that an Official Closing Price, as defined in
NYSE Arca Equities Rule 1.1(gg)(1), would not be reported for a
security if there were no consolidated last-sale eligible trades in
such security on a trading day.\5\ The Exchange does not believe that
it should publish an Official Closing Price to the SIP as an ``M''
value if there has not been a consolidated last-sale eligible trade in
a security on a trading day. For example, based on feedback from
industry participants, the Exchange understands that certain market
participants, such as index providers and mutual funds, follow a
different method of determining a security's closing price when there
have not been any last-sale eligible trades on a trading day. Under
these circumstances, the Exchange understands that an Official Closing
Price reported to the SIP as an ``M'' sale condition that differs from
how an industry market participant may determine such value for its own
purposes could lead to confusion if a market participant's systems read
the ``M'' value published by the SIP that differs from their
calculation.
---------------------------------------------------------------------------
\5\ The Exchange also proposes to amend NYSE Arca Equities Rule
7.35(d)(4) to provide that the Exchange would ``report'' an Official
Closing Price, rather than ``publish'' an ``Official Closing
Price,'' because the SIP, and not the Exchange, publishes the
Official Closing Price.
---------------------------------------------------------------------------
Accordingly, this proposed rule change is intended to amend NYSE
Arca Equities Rule 7.35(d)(4) to provide that the Exchange would not
report an Official Closing Price, as defined in Rule 1.1(gg)(1), in a
security as an ``M'' sale condition to the SIP if there were no
consolidated last-sale eligible trades in such security on a trading
day. And, as noted above, this proposed rule change would not alter how
the Official Closing Price would be disseminated under NYSE Arca
Equities Rules 1.1(gg)(2)-(4).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in
[[Page 1773]]
facilitating transactions in securities, and to remove impediments to
and perfect the mechanism of a free and open market and a national
market system.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it would provide transparency of when
the Exchange's would not report a price to the SIP as an ``M'' sale
condition. The Exchange believes that the proposed rule change is
consistent with the Act because the ``M'' sale condition does not
contribute to the consolidated last sale price for a security, the high
or low price of a security, or reported volume for a security, and
therefore is an informational value. The Exchange further believes that
this proposed rule change is consistent with the protection of
investors and the public interest because it would reduce confusion by
eliminating publication to the SIP of a price that may conflict with
how an index provider or mutual fund determines that value for a
security if there are no consolidated last-sale eligible trades on a
trading day. Finally, the Exchange believes that the proposed rule
change would remove impediments to and perfect the mechanism of a free
and open market and a national market system because it would apply
only when the Exchange is fully operational. If the Exchange is unable
to conduct a closing transaction due to a systems or technical issue,
current NYSE Arca Equities Rule 1.1(gg)(2)-(4) would govern, with no
change.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address any competitive issues, but rather to specify
that the Exchange would not be required to report an Official Closing
Price to the SIP as an ``M'' sale condition if there has not been a
consolidated last-sale eligible trade on a trading day.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange believes
that waiving the operative delay would be consistent with the
protection of investors and the public interest because it would make
transparent that the Exchange would not report an ``M'' sale condition
to the SIP for a security if there has not been a last-sale eligible
trade on a trading day. The Exchange further believes that the proposed
rule change is consistent with the protection of investors and the
public interest because it would not change how an Official Closing
Price would be disseminated under NYSE Arca Equities Rules 1.1(gg)(2)-
(4). The Commission believes that the proposed rule change is
consistent with the protection of investors and the public interest
because it clarifies the Exchange's reporting practices while
maintaining its procedures for reporting and disseminating an Official
Closing Price. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
\12\ For purposes only of waiving the operative delay of this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEARCA-2016-166 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEARCA-2016-166. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
[[Page 1774]]
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEARCA-2016-166, and
should be submitted on or before January 27, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-32036 Filed 1-5-17; 8:45 am]
BILLING CODE 8011-01-P